Bow to the inevitable

Bob Tarzey, Analyst and Director

Quocirca Comment March 2014

Some channel organisations will be fretting about the challenge that the growing use of cloud computing means for their business. For others, cloud is just another way to deliver IT; same thing, another day. A dealer that has survived in the past from the margins on selling hardware and software is going to have to adapt, as over time much of that business will disappear altogether. However, the customers of VARs (which make most of their profit from services) still face the same challenges: making IT work for their business. In fact, for VARs and other IT service providers that do get their ducks inline, cloud actually presents a series of new opportunities and it can also free up budget to fund this. To understand the reason for this means taking a look at the early adopters of cloud services, understanding their motivations and realising that all organisations will become cloud users eventually, whether they like it or not. (Figure 1). Five options were given; with enthusiasts at one end and avoiders at the other (if a tiny number of blockers is ignored). About 20-25% fell into these two groups with the rest somewhere in the middle. What was most interesting is that, generally speaking, both groups held the same views with regard to concerns about cloud, especially when it came to security. One might expect that the enthusiasts would have put such concerns behind them whilst the avoiders remained paranoid not so. The real difference is that the avoiders worry they lack the skills and resources to use cloud securely, whilst this is considerably less so with enthusiasts (Figure 2).

A 2013 Quocirca research report, The adoption of cloud based services1, surveyed mid-sized businesses and enterprises across Europe, including the UK. The research asked the respondents to characterise their organisation with regard to its view on cloud computing Bow to the inevitable

It is absolutely clear from the research that enthusiasts are investing in IT security to enable their use of cloud. They are far more likely to recognise the need for identity and access management (IAM), content filtering and data loss prevention tools than the avoiders (Figure3). 97% of enthusiasts have invested in IAM compared to just 27% avoiders. Furthermore, the enthusiasts spend a higher proportion of their overall IT budget on security than avoiders. This is for two reasons; as figure 2 2014 Quocirca Ltd

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suggests, they are actually buying more security to enable cloud use, but doing so reduces topline IT costs, so the security spending deemed necessary to achieve this rises proportionately.

Those organisations that think they can hold out, including those head-in-the-sand blockers, are living in cloud cuckoo land. Where IT leaders fear to tread, their lines of business and end users will go anyway, engaging direct with the suppliers of cloud services. All organisations will have to upgrade their security to ensure all use of cloud services is safe sooner or later. If the door is not already open, resellers need to lean against it push hard and let in the fresh-air of reality. 1 - The adoption of cloud-based services, July 2013 https://www.ca.com/us/register/forms/collateral/t he-adoption-of-cloud-based-services-increasingconfidence-through-effective-security.aspx

So there lies the opportunity for VARs and IT service providers. Many will already be involved in helping the enthusiasts on their way to cloud nirvana. However, to remain competitive, many avoiders will have to overcome their reticence and turn to cloud to get access to enterprise grade infrastructure at lower costs than they could ever afford in-house; they too will have to invest in security tools and the services to get it all working.

This article first appeared in CRN UK and on: http://www.channelweb.co.uk

Bow to the inevitable

http://www.quocirca.com

2014 Quocirca Ltd

About Quocirca
Quocirca is a primary research and analysis company specialising in the business impact of information technology and communications (ITC). With world-wide, native language reach, Quocirca provides in-depth insights into the views of buyers and influencers in large, mid-sized and small organisations. Its analyst team is made up of realworld practitioners with first-hand experience of ITC delivery who continuously research and track the industry and its real usage in the markets. Through researching perceptions, Quocirca uncovers the real hurdles to technology adoption the personal and political aspects of an organisations environment and the pressures of the need for demonstrable business value in any implementation. This capability to uncover and report back on the end-user perceptions in the market enables Quocirca to advise on the realities of technology adoption, not the promises. Quocirca research is always pragmatic, business orientated and conducted in the context of the bigger picture. ITC has the ability to transform businesses and the processes that drive them, but often fails to do so. Quocircas mission is to help organisations improve their success rate in process enablement through better levels of understanding and the adoption of the correct technologies at the correct time. Quocirca has a pro-active primary research programme, regularly surveying users, purchasers and resellers of ITC products and services on emerging, evolving and maturing technologies. Over time, Quocirca has built a picture of long term investment trends, providing invaluable information for the whole of the ITC community. Quocirca works with global and local providers of ITC products and services to help them deliver on the promise that ITC holds for business. Quocircas clients include Oracle, IBM, CA, O2, T-Mobile, HP, Xerox, Ricoh and Symantec, along with other large and medium sized vendors, service providers and more specialist firms.

Full access to all of Quocircas public output (reports, articles, presentations, blogs and videos) can be made at http://www.quocirca.com

Bow to the inevitable

http://www.quocirca.com

2014 Quocirca Ltd